While the Nasdaq lost some ground by the close, it does have the help of an ever improving Semiconductor Index. After years of underperformance, the Semiconductor Index is about to push itself into the rarified air of the blowoff run of 2000; the break of 550 should prove significant in the long run. Â This will help fuel gains for the Nasdaq and Nasdaq 100.
The S&P broke higher from yesterday’s tight range, but it gave up ground by the close. Watch for a snap break of Wednesday’s low, this would again off a short play – but the stop would be placed above 1,882. Until then, the long side of the market is the place to be.
The Russell 2000 lost ground, which gives shorts a slight edge, but keeping a tight stop on a move above 1,210 would remain prudent.
The Nasdaq is ascending in a very tight channel. Bulls are best placed to benefit as shorts may find it a little harder (given semiconductor strength) to get enough momentum on any downside break.
The long term prospects for the Nasdaq and Technology Stocks looks good. In the near term, the upside break in the S&P remains close enough to yesterday’s tight action to offer a snap short trade should Wednesday’s lows be undercut.
